Press Release

BBMG Corporation Corporate Bond (1st tranche)

2017-05-24

J.P. Morgan First Capital (“JPMFC”) acted as sole lead underwriter on the RMB 4 billion Corporate Bond Public Offering for BBMG Corporation (“the Issuer”) and successfully completed the offering on May 22, 2017. The bond is listed on the Shanghai Stock Exchange (“SSE”).

Real estate industry has been restricted by more regulations since September 2016. The issuer’s debt financing was highly restrained due to BBMG’s influence in real estate business. The deal team has efficiently communicated with regulatory authorities several times via various channels. Finally the deal was approved in January 2017. Among all the companies that got approvals around the same time, BBMG Corporation had the highest revenue share in real estate. Deal team’s professional execution and coordination capability was highly acknowledged by the Issuer.

Financial regulations are released continually while monetary policy tightens since April 2017. Consequently, the money market interest rate has been increasing with large scale of abortion of launching. Under this circumstance, the DCM team captured a favorable market window right after central bank’s injection through MLF in the money market, the issuance was completed in its full size of RMB 4 billion, which is the largest bond issuance since April (including both MTN and corporate bond). The financing cost was therefore locked up and the Issuer was free from rising financing cost in the future. The coupon rate was lower than yield rate of existing BBMG corporate bond in secondary market (3+2 term bond was priced at 5.20% with issuance size RMB 3.5 billion; 5+2 term bond was priced at 5.38% with issuance size RMB 0.5 billion),which was highly commended by the Issuer.

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